OpenAI boosts size of secondary share sale to $10.3 billion

In a significant move, OpenAI has decided to increase the size of its secondary share sale, raising the total to approximately $10.3 billion. This shift marks an increase of over $4 billion from its initial target of $6 billion, according to a source familiar with the matter who requested anonymity due to the private nature of the details. The sale is expected to take place at a valuation of $500 billion, aligning with market expectations. Earlier this year, OpenAI was valued at $300 billion during its latest fundraising round. The company communicated this opportunity to its employees on Wednesday, allowing current and former staff members who have held shares for more than two years until the end of September to decide on their participation in the sale. The transaction is anticipated to close in October, with notable participating investors including SoftBank, Dragoneer Investment Group, Thrive Capital, Abu Dhabi's MGX, and T. Rowe Price. OpenAI is part of a select group of high-value tech startups that provide periodic opportunities for employees to sell portions of their equity, thereby alleviating the pressure to pursue an initial public offering (IPO). Companies like SpaceX, Stripe, and Databricks have also engaged in similar secondary sales, enabling employees to secure some financial gains. Notably, in November, OpenAI facilitated a sale of around $1.5 billion worth of shares through a tender offer in partnership with SoftBank.